SIERRA LEONE AGRICULTURAL RESEARCH INSTITUTE 2015 ANNUAL RETREAT Theme: MAKING SLARI A BETTER RESEARCH INSTITUTION FOR 21 ST CENTURY SIERRA LEONE TOPIC:

SIERRA LEONE AGRICULTURAL RESEARCH INSTITUTE 2015

ANNUAL RETREATTheme: MAKING SLARI A BETTER RESEARCH INSTITUTION FOR 21ST CENTURY SIERRA LEONE

TOPIC: REQUESTING RESEARCH FUNDS AND MAKING RETURNS FOR MONEY SPENT

PRESENTED BY

ALIEU BAH

FINANCE OFFICE

Background

Vision

Improved and sustainable broad-based agricultural growth

Mission Statement

• Enhancing sustainable productivity, commercialization and competitiveness of the agricultural sector through generation and promotion of innovative agricultural technologies and empowerment of stakeholder.

PRIMARY ROLE AND RESPOSIBILITY OF FINANCE DEPARTMENT(PAGE 3 ACCOUNTING & PROC. MANUAL)

• This department incorporates the financial and management accounting functions and has the primary responsibility of exercising control over the financial affairs of the Organisation. This involves establishing and implementing financial policies in order to achieve Management objectives. It also includes the provision of financial information, primarily to the governing body as well as other institutions that may require it by law.

DISBURSEMENTS POLICIES

BANK:Policies governing the disbursement of funds are as follows:-

There shall be four (4) signatories to all bank accounts as

follows:-

• Class A – Director General/Deputy Director General/Director/OIC

• Class B- Finance Officer and Assistant finance Officer/ Srn. Asst. Finance Officer

DISBURSEMENTS POLICIES cont.

All payments should be supported by Payment

Vouchers (PVs), which have been approved and provide

sufficient information on all transactions. Except for minor expenses which are paid out of petty

cash, payments above an agreed amount should be made by cheque.

Cheques should be pre-numbered and cheque books, PVs, etc should be adequately safeguarded (i.e. kept under lock and key).

DISBURSEMENTS POLICIES cont

Signatories to accounts should not be involved in the preparation of cheques to ensure adequate segregation of duties.

Cash:

The following policies apply to the management of cash:-

An Imprest System is operated at the Head Office and all district offices, with a fixed petty cash float maintained for minor payments.


The float levels are reviewed periodically based on the average spending pattern.

Replenishment of the petty cash float is on a reimbursement basis when the balance falls to the minimum level.

Reconciliation of the petty cash balance is carried out on a daily basis.

Reconciliation of the petty cash balance is carried out on a daily basis.

Expense claim Forms are completed for transport and per diem expense claims and other reimbursable expenses incurred by staff.


Accounting Officer:

Retrieve all supporting documents (invoice, GRN, LPO, internal memos and other documentation relevant to the payment) to initiate the payment processing procedure.

• Raise pre-numbered Payment Voucher in triplicate for each payment to be made detailing the following:-

Payee name, account code and addressDateBank Account Code – Account code assigned to bank on which the cheque is to be drawn.Payment Details – brief narrative of the purpose of the payment, which may include invoice numbers, period for which payment is being made etc.Amount – this is the amount per payment line.

DISBURSEMENTS POLICIE cont Gross amount – total of all payment line amounts. Withholding tax – an amount deducted from the payment

for all goods and services, at the prevailing percentage rate of the gross amount.

Cheque Amount – gross amount less the withholding tax.

Amount in words – cheque amount stated in words.

DISBURSEMENTS (FLOWCHARTS) Accounting Officer:

Retrieve all supporting documents (Invoice, GRN, PO) to initiate the payment processing

Raise pre-numbered Payment Voucher (PV) In triplicate

Obtain cheque book and prepare cheque

Enter cheque number in the appropriate field on the PV and sign “prepared by” field of PV

Forward PV, cheque and supporting documents to Manager, Finance and Accounts for checking and submission to authorised signatories


ADVANCES:

Policies All advances in excess of Le100,000 will be processed

as cheque payments Advances should be retired within three (3) days of

the completion of the activity financed by the advance

Cash Advances• Finance Department: Receive “Request for Cash Advance Form” detailing

Cash Advances Cont.

Name of Applicant Department Date Amount requested Purpose Date for completion of activity Date for submission of retirement (within 3 working

days of completion of activity) Ensure approved by Director General, Director, OIC,

Accounts and pre-audit by the internal Audit Process as cheque payment following Cheque

Payment procedures

Retirement of Cash Advance

Accounts Section/Internal Audit:Receive “Retirement of Cash Advance” form detailing

Amount advanced

Expenditure made with invoices attached

Balance to be paid to or refunded by claimant

Ensure approved by Manager, Finance and Accounts

Ascertain any amounts payable to or refundable by claimant

Issue a receipt to cover any amount received from (or refunded by) claimant

Retirement of Cash Advance Cont.

Record details of transaction i.e. expenses (per Retirement Form)

Record refund/payment transaction

Retrieve “Request for Cash Advances Form” and attach to “Retirement of Cash Advance Form” and file in JV number order

Documents:

Request for Cash Advance

Acquittal of Cash Advance

Acknowledgement Receipt

Payment Vouchers


Petty Cash DisbursementsAn imprest system is operated at the headquarters and the research centres, where each petty cash holder is responsible for the disbursement and replenishment of the cash float. Claims Procedure•Senior Officer (centre cashier)Receive completed pre-numbered petty cash voucher (PCV) in duplicate detailing the following:-•date•payee•purpose of payment


• amount in figures and words• the relevant account code for expenditure• petty cash account code• Ensure claims for miscellaneous expenses are

documented on an expense claim form.• Ensure relevant receipts are attached.• Attach PCV to supporting documents and forward to

Finance and internal Audit to check and authorise payment.

• Receive voucher and check if payment authorised or cancelled.


If Authorised•Effect payment and ensure recipient signs claim form as confirmation of amount received.•Stamp claim form and both copies of PCV with “PAID” stamp.• Record payment in Petty Cash Register.• File documents pending their forwarding to Finance Department (in support of cash replenishment request) to record transaction


If Cancelled•Write “CANCELLED” across duplicate PCV in red ink as done on original PCV.•Complete new PCV if reason for cancellation is due to inaccurate amount or incorrect coding.•Return supporting documents to claimant if documentation is incomplete or requires further approval.

Request for use of project funds

• The disbursements are made based on the contract/MOU signed by the parties.

• The initial funds requests should be submitted outlying amount required as per the approved budget and the planned activities e.g. Administration costs, Program costs, Salary, costs casual labor, fuel fertilizer, research allowances. Strictly by budget activities

• The funds disbursed should be used for the intended purpose and not for personal benefit/gain

• The partner should provide correct bank details that is Account name, Account Number, B-Ban Number

Liquidation• Subsequent Funds Requests would only be made after,

SLARI has been satisfied that all previous installments of released funds have been fully and properly utilized as per the agreement and approved budget.

• The requests should be supported by liquidation reports for the previous advance and the plan of action for the requested amount.

Liquidation Reports Include:• Approved Supplier Selection Canvas Summary• Approved Purchase order Proforma• Invoices /Billings • Payment Voucher (commonly known as PV) & Journal

Voucher (commonly known as JV)• Delivery Notes• Receipts, vouchers, bank statements, payroll records,

requisition, and goods received notes, amongst others• All payments should be based on a complete package:

Complete Payment PackageInclude the following:• Approved Requisition/request.• Letters of inquiry.• Approved canvass sheet with supporting quotations or

price information;• Approved purchase order;• Bill or invoice from supplier;• Receipt of goods or services.• The value of the cheque is equal to the value of goods or

services received/ordered;• The supporting documents justify the payments;

Complete Payment Package Cont. • Supporting documents are accurate;• All the attached documents are stamped PAID

to prevent reuse. • Approval limits observed as per delegation of

authority.• Payments to suppliers, service providers and

staff salaries/allowances should be made through bank transfers or cheques rather cash payments. Petty Cash should be considered for petty transactions. Ranging SLL 100,000 to SLL 500,00

Compliance with Statutory Obligations• Deduct 5% withholding tax for supplies that are

above Le 500,000.• Organizations, researchers, coordinators

should comply with all statutory requirements and remit to the statutory authorities within the stipulated time frame.

• Comply and apply with policies and procedures all the time.

Invoices/Receipts• For a receipt or invoice to be valid and acceptable to

auditors and donors, It must explain the following:• When the transaction took place. The date clearly

shown on the receipt• Who supplied the goods: Receipts should either be

on supplier’s own stationery or from a pre-printed pre-numbered internal receipt book with the organization’s logo or stamp.

• What was purchased, a description, unit price and quantity of each item.

• How much the total transaction cost: The amount should be clearly shown in words and figures.

Invoices/Receipts continue• Hand written receipts must be written

in ink not pencil and show the amount in figures and words. Signed scraps of paper do not qualify as valid receipts for any payment done.

• No receipts/invoices means that, there is no proof that the purchase was made –This can be disallowed expenditure.

Fuel Charges• Vehicle log sheet should be attached.• The log sheets should clearly

indicate the destination.• The log sheet should also clearly

show the opening and closing mileage.

• The log sheet should at least be reviewed and approved by an authority.

Budgeting

!

• Seek approval from the donor when there is need to change the budget from one activity to the other.

• Invest within the available budget.• Budget together with detailed work plan must always

be attached as an addendum to the MOU.• If there are any balances from previous year at

yearend they should be captured on the MOU separately from the current disbursement. Liquidations for this amount should also be clearly indicated to avoid double liquidation

Procurement and Payments• Have a supplier list in place. You can also make use

of government supplier list if you don’t have whilst you are coming up with your own.

• The procurement should be fair and transparent • Minimum segregation of duties must always be

observed.• During the emergencies lets make use of the

following modes of payment cheques, cash and in a normal situation cash should be minimized

• Lets us do things right, the first time we do it.

Thanks so much for Your attention